The UK’s Culture, Media and Sport Committee (CMSC) has recommended a 5% streamer levy to the government, and added that this should be legislated for if the industry fails to introduce it voluntarily within a year.
Known as the Kosminsky Levy after its main backer, Wolf Hall director Peter Kosminsky, the idea gained tonnes of traction during the recent CMSC inquiry into British film and high-end TV (HETV), which has this morning published its long-awaited 126-page report into the industry’s future. The report claims its recommendations will “help [the industry] ride out future storms” and avoid becoming “complacent about the UK’s status as the ‘Hollywood of Europe.’”
The proposed levy would require “all subscription video-on-demand (SVoD) platforms that operate in the UK [to] pay a 5% levy on their UK subscriber revenues into a cultural fund administered by the British Film Institute (BFI) to support domestic HETV production” and “supplement the budgets of high-end drama of specific interest to UK audiences but which doesn’t necessarily have cross-border appeal,” according to the report.
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“It’s time for the streamers to put their money where their mouth is,” said the report. “They laud the UK’s mixed production ecology, with public service broadcasters and independent producers at its heart but their business practices are putting that at risk.”
Administrator the BFI will determine whether streamers themselves are allowed to access the fund for their own British content, according to the committee. The news comes with Netflix’s Yorkshire and Liverpool-created Adolescence dominating the streamers ratings across the globe.
Netflix noted in a statement that the UK is its biggest production hub outside of North America, but sounded a note of caution too: “In an increasingly competitive global market, it’s key to create a business environment that incentivises rather than penalises investment, risk taking and success,” a spokesperson added. “Levies diminish competitiveness and penalise audiences who ultimately bear the increased costs.”
A levy is already in place in several European nations, including its other biggest international producer, France.
Patrick Holland, executive chairman of Banijay UK, whose UK labels include Manchester’s Workerbee and Glasgow-based Location. Location, Location producer IWC, was broadly supportive of government backing the industry, although he was unconvinced the levy was the solution: “We are pleased that the Committee is recognising the need for intervention in the scripted sector, however, we aren’t convinced the levy is the way forward. Banijay UK has long called for an increase in tax credits to support the mid-range UK production programming sector, which is at the most risk,” he said
“Shows like Peaky Blinders, SAS Rogue Heroes, Richard Gadd’s new series Half Man, and Jack Thorne’s new C4 drama Falling required far more funding than the Public Service Broadcasting licence can provide to get into production. These types of shows, developed by brilliant British writers that speak directly to UK audiences, sit in the £2.5-3.5m bracket and are at real risk of not being made going forward if, as an industry, we can’t guarantee the funding they need.
“We need more help to be able to bridge the gap, and an increase in tax credit provides a suitable and practical option, derisking for distribution investors, while allowing the very best home-grown content to be made for UK audiences.”
